How to Become a Property Manager in California

A real estate license can qualify you for more than a career as a Realtor®.

When you get your license, you can become a property manager in California.

Property managers handle the paperwork and ensure the well-being of the property. A property manager is a licensed third party who manages the property for the landlord. It’s a job that’s in high demand!

So, let’s explore what you need to do to become a property manager in California.

Do You Need a Real Estate License to Become a Property Manager in California?

Short Answer: In most cases, yes, a real estate license is required if you plan to handle the core functions of property management—such as collecting rent, negotiating leases, or managing trust funds—on behalf of an owner for compensation. However, there are some limited exceptions, which we’ll explain below.

When a License Is Required

Under California Business & Professions Code §10131(b), any person who, for compensation, does any of the following on behalf of another is performing a licensed activity and must hold at least a Salesperson License (under a Broker) or be a licensed Broker:

• Negotiates or collects rent
• Arranges or negotiates leases
• Lists or advertises property for rent or sale
• Manages trust accounts (e.g., handling security deposits)

If you want to offer comprehensive property management services for multiple clients or owners—marketing units, signing lease agreements, and collecting rent—you typically need to hold a California real estate license.

Limited Exceptions (Unlicensed Employees)

1. On-Site Residential Managers:
   • California law allows an on-site manager (often living at the property) to handle basic day-to-day tasks for a single property without holding a real estate license.
   • These tasks are usually limited to administrative duties like taking maintenance requests or showing the property to prospective tenants. In most cases, negotiating lease terms or collecting rent for multiple properties would still require a license.
2. Clerical or Administrative Roles:
   • If you’re directly employed by a real estate broker or property owner, and your duties are restricted to purely administrative activities—such as processing paperwork, coordinating repairs, or scheduling showings—a license may not be necessary.
   • However, the minute you engage in activities that involve negotiating lease terms, you’re stepping into licensed territory.

What are the Steps to Become a Property Manager in California?

Getting a real estate license is the first part of becoming a property manager in California. This guide gives you instructions on how to get your license and become a property manager.

Step #1: Meet the Requirements to Become a Property Manager

To become a licensed property manager, you need to meet the following requirements:

• Be at least 18 years old
• Have a high school diploma or a GED
• Be a U.S. citizen or a permanent resident in the U.S.

Meeting these requirements ensures that you can get hired at a real estate brokerage and service clients.

Step #2: Enroll in an Accredited Real Estate School

An accredited real estate school is where you will fulfill the pre-licensing educational requirement to get your real estate license. A real estate school provides students with three required courses:

• Real estate practice
• Real estate principles
• An elective of your choice

Each course has concepts that help you understand real estate as a practice.

Step #3: Collect All 3 Real Estate Certificates

You get a certificate of completion after you pass an accredited real estate class. The certificate is proof of completion. So, to schedule your California real estate exam, you need to collect all three certificates.

Step #4: Schedule and Pass the California Real Estate Exam

The final step before getting your real estate license is to schedule and pass the California real estate exam. Students have to apply before they schedule the licensing exam.

Their application must include:

• Completed live scan form
• State exam fees
• 3-licensing course certificates (proof of course completion)
• Completed RE Form 435

After compiling the paperwork above, you can mail your application to the Department of Real Estate (DRE.)

Step #5: Hang Your Real Estate License at a Brokerage

Property managers must hang their license at a real estate brokerage. In other words, a broker must hire an agent to work for them. Once you pass the state exam, the DRE will mail your real estate license. Once it arrives, you can sign with a brokerage.

Property managers can also go on to get their real estate broker license. Once they do, they no longer have to work for a real estate brokerage. Instead, they can represent themselves.

Step #6: Get Your Property Manager Certificate (Recommended)

The next step is to get a property manager certificate in California. Although not required, it is recommended to get a certificate to provide extra credentials to your expertise. A certificate is proof of your accreditation and proper educational training.

Getting your property management certificate requires more schooling. You have to attend a 10-coursework class and pass the state exam to get your property management certificate. This process takes 18-24 months to complete.

Step #7: Start Your Property Management Company

The final step is to start your property management company. This is a requirement for everyone to complete if they want to book clientele.

In the state of California, the Department of Real Estate will not recognize a property management services company as an LLC. You will have to incorporate your company to be an approved business to operate and help clients.

What Does a Property Manager Do?

Property managers have a lot of responsibilities.

One of the biggest duties of a property manager is handling rental contracts. They’re responsible for screening any tenant that sends an application. Whether it’d be through background checks or checking the credit scores of the tenants.

Also, property managers schedule home inspections. The first inspection happens when the tenant moves in, and the second happens when they move out.

Communication is also another part of the property manager’s job. As the property manager, you are the middleman. Regardless of what is happening in the property, you must update both the landlord and the tenant.

On top of that, property managers manage finances and accounting. From collecting rent payments to paying the expenses. All while ensuring they handle marketing and schedule showings.

Before You Become a Property Manager…

To ensure a smooth business, there are a few things that you need to know before you become a property manager.

First, you need an accountant and a real estate attorney. These two are essential to know your business complies with California laws and regulations.

Understanding the financial side is also vital to your operations. You will need three (3) separate bank accounts.

• Rent deposit account for the tenants to send their payments to
• Trust account that will serve as extra protection for your business
• Operations account for all your expenses, payments, and salaries

From there, you will need to set up your Errors and Omissions Insurance. The Errors and Omissions Insurance covers you in case you get sued or enter a legal quagmire. Accounting software such as QuickBooks can help you track your money.

Also, join a trade association. Trade associations such as the California Apartment Associations have every form you need. You also should join a credit bureau association. These associations can help you perform background checks for your tenants.

Finally, you need to consider how you market your business. A website, signs, and other lead generation investments are a great way to market yourself. Also, ensure you align and document your policies and procedures. These help people understand you conduct business.

How Many Renters Are in California?

Data from the U.S. Census Bureau’s Residential Vacancies and Homeownership Annual Statistics shows that California’s homeownership rate has stayed around 54–56% from 2019 to 2023.

This means that about 44–46% of the state's housing units are occupied by renters. With an estimated total of about 14.76 million housing units in 2023, there are roughly 6.5 million rental units.

The following chart displays the estimated percentages of renters, which are calculated as 100% minus the homeownership rate, for these years.

Sources: U.S. Census Bureau’s QuickFacts and Residential Vacancies and Homeownership Annual Statistics.

How Many Property Managers Are in California?

Between 2019 and 2023, the number of property managers in California steadily increased. According to U.S. Bureau of Labor Statistics data, there were about 37,870 property managers in 2019.

In 2020, the number dipped slightly to around 37,630, likely due to the pandemic’s impact on the rental market. However, the industry rebounded in the following years.

By 2022, there were roughly 46,810 property managers, and 2023 estimates indicate there were about 50,100 property managers based on payroll employment data. (Note that these figures do not include self-employed property managers, who make up a significant portion of the workforce.)

This consistent growth reflects California’s expanding rental market and the increasing need for professional management services for a diverse range of residential properties.

*Estimated value for 2021 based on the upward trend observed between 2020 and 2022.

Sources: U.S. Bureau of Labor Statistics (BLS); California Employment Development Department (EDD).

Is Property Management a Growing Business in California?

California’s property management field is growing fast. The number of property managers increased from about 37,870 in 2019 to an estimated 50,100 in 2023. This shows that more people need professional property management services.

The growth is driven by California’s busy housing market. With roughly 6.5 million rental units and high rates of renters, there is a constant need for skilled property managers. New residential developments, complex regulations, and market pressures—like high rental demand and low vacancy rates—mean there will be plenty of work in this field.

Whether you plan to work for an established company or start your own property management business, the market conditions in California look promising for long-term growth.

Final Thoughts

Becoming a property manager is a long process and hard work. But, that shouldn’t deter you from starting. The reason why is because there is no other career like that of a property manager.

You create your own company and you can watch it grow as you work hard to expand it. It’s hard-working, but it’s also rewarding work.

Want to learn more about property management? Join our Property Management course. This course offers the most current and thorough overview of the property management industry to get you started in the career. Tap the "Enroll" button below to join today.